Q2 2023 Financial Results Revealed by Boeing (BA)

Boeing results exceeded analyst expectations on Wednesday, driven by increased commercial aircraft deliveries as the company ramps up production. However, losses in its defense and space divisions led to a net loss for the quarter.

The company generated $2.6 billion of free cash flow in the second quarter, surpassing analyst forecasts. It also reaffirmed its full-year guidance of between $3 billion and $5 billion of free cash flow.

Following the release of its results, Boeing shares rose nearly 6% in morning trading.

Here is a breakdown of the company’s performance during the period ending June 30, compared to Refinitiv consensus estimates:

• Adjusted loss per share: 82 cents vs. 88 cents.
• Revenue: $19.75 billion vs. $18.45 billion

Both Boeing and main competitor Airbus have faced challenges in increasing aircraft production due to the Covid pandemic, causing some airlines to experience delays in receiving new jets despite a rebound in travel demand.

During the second quarter, Boeing delivered 136 planes, up from 121 aircraft in the same period last year.

Boeing stated that it is gradually increasing production of its popular Max aircraft, targeting a pace of 38 jets per month, up from 31 per month as previously planned. The company reiterated its 737 delivery forecast of between 400 and 450 planes for this year.

Additionally, Boeing raised its output of the 787 Dreamliner aircraft to four per month and remains on track to reach a rate of five per month by the end of the year. It expects to deliver as many as 80 of these wide-body planes in 2023.

Earlier this year, Boeing reported quality issues in both the Max and Dreamliner programs, but it maintains its delivery projections.

“With strong demand in our key markets, it is crucial that we maintain focus on execution and ensure stability in our factories and supply chain to fulfill customer commitments,” said CEO Dave Calhoun in a message to employees on Wednesday.

Boeing’s second-quarter revenue increased by 18% year-over-year to $19.75 billion. However, the company reported a net loss of $149 million or 25 cents per share, compared to a profit of $160 million or 32 cents per share in the same quarter last year, primarily due to charges in its defense and space divisions.

On an adjusted basis, the company recorded a loss of $390 million or 82 cents per share.

Boeing’s defense, space, and security unit reported a loss of $527 million for the quarter, compared to an operating profit of $71 million a year ago.

The company attributed these losses to a $257 million delay in the launch of its crewed Starliner spacecraft, a $189 million increase in production costs for its T-7A Red Hawk trainer jet, and a $68 million loss resulting from production delays in its MQ-25 program.

Correction: This story has been updated to reflect that Boeing reported a $189 million loss due to higher production costs on its T-7A Red Hawk trainer jet. A previous version incorrectly stated the figure.